Blockchain – Fundamentals and trends!
Surely if you’ve come afar to read this article, then perhaps you might have heard about these more than 100 times! Perhaps, this path-breaking technology does need a mention and appreciation. The blockchain is not only a game changer in the field of financial services but in the coming times can play a pivotal role in many, many fields.
Let’s just find out what these actually are from the root level and what change in the trend we can expect in the coming future.
A Blockchain is a distributed database, meaning that the storage devices for the database are not all connected to a common device. It maintains a growing list of ordered records, called blocks. Each block has a record of the issuance and is linked to a previous block. Cryptography ensures that users can only edit the parts of the Blockchain that they “own” by possessing the private keys necessary to write to the file. It also ensures that everyone’s copy of the distributed Blockchain is kept in an orderly manner.
“Allowing digital information to be distributed rather than being copied”
Let’s look closely at the above-mentioned process along with some steps:
User requests transaction.
- The requested transaction is broadcasted to a P2P system/network of nodes.
- This network validates the transaction and user information using algorithms. (Cryptocurrency, contracts, and other records)
- Connects with other transactions in a new block for the ledger.
- New block join existing block in a unilateral way.
- This chain provides a permanent, non-condemnable and transparent record of the transaction.
- Transaction completed.
- No Bank Required
- No Physical Form
- No Intrinsic Value
- Permanent Record
Future Trends in Blockchain
The blockchain isn’t a thing of years. It has potential to change the course of technology. It’s expected to be omnipresent in everything we do over the network.
Looking at some of the sectors it’s going to have an impact and it’s expected to dominate.
- Blockchain would definitely shape the finance sector. No surprise, its evident how much security a user demands in his finances and Blockchain is the king in the field here. Blockchain transcends crypto currencies and offers many other solutions too.
- Blockchain have the potential to reduce cyber risks by offering identity authentication through a visible ledger and tasks performed could range from numbering, maintaining and indexing records and communicating information provided in records that could not be done through an electronic ledger system.
- Blockchain could be adapted by trade and management system for its robustness. The settlement of currency, equity and fixed income trades almost instantaneously through distributed ledgers creates a significant management system.
- Elections could be made more quick by Blockchain through the distribution of workload and dividing labor and time simultaneously.
- There are several startups working towards criminal sector to help track down criminals faster and log the cases and history in the database.
Blockchain has the potential to create new industry opportunities and disrupt existing lagging technologies and processes.
Blockchain technology will make every seemingly process faster and reliable as it increases the speed and efficiency of transactional activity.
Now you decide, Is Blockchain a fad or a revolution?